by Emma Smith
The last few months of 2020 have been exceptional for the crypto industry. Bitcoin is arguably the hottest asset out there with several major cryptocurrencies catching the tailwinds. Few now can credibly argue that cryptocurrency is not here to stay.
Amidst the rally, the demand for crypto is through the roof. Investor activity in trading apps reflects this trend. Cryptocurrency is also going through fundamental evolution, and becoming more ingrained in real-world commerce, in addition to the function of a speculative asset.
As the New Year dawns, businesses are conducting all manner of analyses to improve their fortunes in the coming year. The changes range from organizational changes, changes in strategy, and even incorporation of new innovation.
Cryptocurrency fits into this mold perfectly. An efficient payment system or a valuable asset platform ticks the boxes for many businesses.
( Also Read: What Is Cryptocurrency And How Does It Work? )
Here are some Cryptocurrency Trends to consider:
Bitcoin Status as a Hedge Asset More Widely Accepted
Bitcoin had another historic bullish run to end 2020. The difference this time is that even institutional investors are scrambling for a piece of the pie.
As the dollar endures a tumultuous period due to the combined effects of the American Presidential election and COVID, Bitcoin is emerging as an alternative hedge asset against inflation. Businesses can invest in Bitcoin to hedge against slides in the dollar and other assets.
Cryptocurrency is powered by blockchain technology. The technology itself has remarkable uses, over and above crypto. Banks are increasingly researching blockchain finance to manage transactions and data. Businesses can explore this option too for efficient cloud storage of data and streamlining financial records. Blockchain banking has shown the advantages of this technology and many businesses will follow suit.
Regulatory Progress for Cryptocurrencies
Regulations have generally been slow to catch up to cryptocurrency. In 2020, regulators accelerated this process somewhat, and there emerged relative regulatory clarity for major cryptocurrencies.
XRP was the exception as the US Securities and Exchange Commission announced that it deemed the tokens as securities and would be suing Ripple.
Nonetheless, regulatory clarity will likely be a boon for cryptocurrencies. Businesses that have sat on the sidelines waiting for such clarity can begin to make forays.
PayPal Facilitating Crypto Purchase and Holding
PayPal is one of the most significant payment platforms in existence. The company’s announcement that it would facilitate crypto purchases through its network is a massive step forward.
Most businesses also accept PayPal for international transactions and crypto integration goes a long way in making it easy for businesses to accept major cryptocurrencies.
Mass Adoption of Cryptocurrencies
With more established companies like PayPal accepting crypto, more businesses…